When you start a business in Idaho, you want to be sure that everything you do is legal under the law. This may require getting one or more business licenses. Idaho does not require businesses statewide to have a license simply to operate, but every business must be registered with the Idaho Secretary of State.
Some Idaho cities might require a business license to operate locally. Some types of licenses, permits, or registrations are necessary for certain business activities, such as retail sales or alcohol service.
Starting a business, registering it, and obtaining any necessary licenses or permits costs money. How much will depend on where your business is located and the types of business activities you have planned.
This article will discuss:
- What a business license is
- When you might need a business license
- How obtaining a business license is different from registering a business with the state
- How much it could cost
Do you need a business license in Idaho?
You do not need a general Idaho business license to operate in the state or when starting a business in Idaho. Most businesses, however, must register with the Idaho Secretary of State. The registration process gives a business the legal authority to maintain a presence in Idaho. This is similar to how a license works. Some people may refer to business registration as a “business license,” but they are not quite the same.
Business registration
Nearly all businesses operating in Idaho are required to register with the Secretary of State’s Office. The only exception is for sole proprietors who do business using their full name. The three main types of business registrations are:
- Domestic businesses: Businesses based in Idaho may register with the Secretary of State to form a business entity like a limited liability company (LLC).
- Assumed business names: Sole proprietors and partnerships that do not want to form business entities can register a fictitious name for their businesses.
- Foreign businesses: Out-of-state businesses that do business in Idaho must register as foreign business entities. In this case, “foreign” means “out of state,” not “international.”
Business licenses
In Idaho, business licenses and permits give a business the legal right to engage in specific activities. Some business licenses and permits are at the state level, while others involve local officials. A few business activities require a federal license.
A business might need multiple licenses or permits, or it might not need any. It depends on where the business is located, whether it has employees, and the types of activities it is pursuing.
Idaho provides a standard form that businesses may use, known as the Idaho Business Registration (IBR) form, to register with the following state agencies:
These agencies may issue business licenses or permits related to retail sales, employment, and other activities. Other state agencies may issue professional licenses or licenses for activities like alcohol distribution.
At the local level, the city clerk’s office will have information about city permits.
How much does a business license cost in Idaho?
Your business license cost will vary not only state to state, but also county to county and different jobs may need different permits. Registering a business or assumed business name in Idaho requires a filing fee paid to the Idaho Secretary of State. There may also be ongoing costs and renewal fees. Other types of licenses or permits may involve filing fees paid to a state agency or city government. These fees can vary widely, but typically range from around $50 to $500.
Cost of business registration
The Idaho Secretary of State charges $100 to:
- Form a domestic corporation or LLC; or
- Register a foreign business entity.
If you file paper forms, you must pay an additional $20, for a total of $120.
The fee to register an assumed business name is:
- $25 for a domestic business; or
- $60 for a foreign business.
Idaho does not charge an annual fee for business registrations. It also no longer requires businesses using assumed names to renew their registrations.
Types of business licenses in Idaho and their costs
Some Idaho cities issue general business licenses. The fees can vary widely, ranging from around $50 to several hundred dollars. Many local business licenses require regular renewal and payment of a renewal fee.
Some state business licenses and permits, such as the sales and use tax permit, do not involve a fee. They are more like registration with a state agency for issues like taxes and employment.
Federal licenses may be necessary for certain business activities. These typically involve fees in varying amounts.
| Type of license or permit | Reason for needing a license | Fee range |
| General business license (city level) | Required to operate in some Idaho cities | Approximately $50 to $500, with renewals. The amount may vary based on factors like the number of employees. |
| Property-based licenses and permits (city level) | Required by local governments to operate physical locations, such as certificates of occupancy and fire marshal certificates | Around $50 to $100 |
| Industry-specific licenses and permits (city level) | Required to operate specific types of businesses, such as alcohol service | $100 to $500, typically |
| Business activity licenses and permits (state level) | Required for business operations like retail sales and employment | Usually no fee |
| Industry-specific licenses and permits (state level) | Required to operate businesses regulated at the state level, particularly in professional fields like healthcare, law, or accounting. | Often charged to individual professionals instead of the businesses themselves. Typically several hundred dollars per year. |
| Industry-specific licenses and permits (federal level) | Required to operate specific types of businesses governed by federal law. | Hundreds to thousands of dollars |
Examples of different industries and the different licenses they require in Idaho
City licenses and permits:
- General business license, when required
- Certificate of occupancy
- Taxicab license
- Building permit
- Liquor license
- Short-term rental permit
- Vendor license
- Event permit
State-level licenses and permits:
- Sales tax permit
- Contractor license
- Professional license, such as medicine or law
Federal licenses and permits:
- Agricultural licenses through the U.S. Department of Agriculture
- Environmental permits
- License for firearms sales
Renewing your business license in Idaho
Business registration with the Idaho Secretary of State does not require annual renewal, but you must remain in good standing with the state to keep operating your business. This means filing annual reports and maintaining a registered agent in Idaho. If you have a third-party business serve as your registered agent, this can cost around $50 to $100 per year.
Many local, state, and federal licenses and permits require regular renewal and payment of a renewal fee. The amount of the renewal fee varies, but it is typically equal to or less than the initial fee for the license or permit. The consequences of not maintaining a license or permit can be significant, and may include:
- Late fees;
- Other administrative penalties;
- Loss of the legal authority to do business; and
- Legal consequences, including personal liability.
Conclusion
While registering a business or business name is almost always required, getting a business license in Idaho is not necessary in all situations. Whether your business needs any specific licenses or permits depends on the type of business and other factors. Once you know what your business will do, you can research what licenses, if any, you will need — and when you’re ready to make things official, you can learn how to start an LLC in Idaho to establish your company legally.
FAQ
If you are physically located in Idaho, you must register with the Secretary of State to form a business entity or use an assumed business name. This includes home-based businesses, unless you are operating as a sole proprietorship and using your individual name.
Out-of-state businesses do not have to register in Idaho unless they “do business” in the state. Occasional e-commerce sales to Idaho residents across state lines do not count as “doing business,” but it can be tricky to know when you have enough involvement in Idaho to meet that standard.
You can form a new business, register a foreign business, or register an assumed business name with the Idaho Secretary of State.
For other types of business licenses and permits, you must go through the government agency that issues them. Your city clerk’s office will have more information about local licenses and permits.
You can get an almost immediate response if you file with the Secretary of State online. Filing paper forms can take a week or longer.
The length of time needed for specific business licenses and permits varies greatly. Some government agencies can respond within days. Others need weeks or longer.
Registering as an LLC gives your business the legal authority to operate in Idaho. Some cities require businesses to obtain local business licenses. You might still need other specific types of licenses or permits, such as a sales tax permit or a liquor license, depending on your business’s activities.
Not exactly. An LLC is a legal structure that allows you to operate a business and protects you from personal liability. A business license allows your business to engage in certain activities, such as operating a retail store, running a taxi service, or selling firearms to the public.
Operating a business without a required license can have serious consequences. You can lose your legal authority to run your business, which can affect your protection from personal liability. Your business — and you individually — can face fines and other penalties.